After all the rumors and all the denying by FoMoCo, Ford has officially announced today that it is re-evaluating strategic options for Volvo Car Corporation, “including the possible sale of the Sweden-based premium automaker.”
FoMoCo said that its decision comes in response to the decline in global auto industry sales particularly in the past three months and severe economic instability worldwide. The announcement comes just a day before CEO Alan Mulally, along with GM CEO Rick Wagoner and Chrysler LLC CEO Bob Nardelli, head to Washington to present a proposal for $25 billion in loans to Congress.
FoMoCo said that the review is likely to last several months and in the meantime it will continue working with Volvo and Volvo CEO Stephen Odell to implement its restructuring plan. At the same time Ford and Volvo will also take steps that will allow Volvo to operate as a stand-alone brand.